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3 Stocks to Watch as Videogame Spending Continues to Soar
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Outdoor entertainment joints like parks and movie theaters have started drawing footfall but that isn’t going to hamper the videogame market that saw unprecedented growth during the pandemic. The last year was particularly great for the mobile and video gaming industry and the trend continues this year, with the first half witnessing record spending on videogames.
Also, so far, video game sales have increased every month since the coronavirus outbreak except for a surprise dip in April. This thus proves that the pandemic wasn’t the sole reason behind videogame sales getting a boost last year.
Videogame Sales Upside Continues
According to a report from mobile data and analytics provider App Annie, and IDC, gamers spent a record $1.7 billion per week globally on mobile games in the first quarter of 2021. This is a 40% jump from the pre-pandemic levels, the report mentions.
The United States led the market with gamers spending the most in the first quarter of the year. The report also mentions that global spending on mobile games will increase 2.9 times this year over PC and Mac gaming.
That said console games too have been putting up a great show since the coronavirus outbreak. According to the NPD Group, consumer spending on videogames, accessories and content and hardware jumped 3% on a year-over-year basis in May, reaching $4.5 billion. On a year-to-date basis, consumer spending on videogames has jumped 17% to $24 billion.
Videogame Industry Poised to Grow Further
No doubt, the videogame industry has been one of the biggest beneficiaries of the pandemic. That apart, the last year also saw the launch of a range of new titles and consoles, which have been driving sales this year too.
According to the NPD Group, spending on videogames jumped 30% in first-quarter 2021 on a year-over-year basis to reach $14.92 billion. Moreover, spending on hardware jumped a whopping 81%
In fact, in May too, sales were driven by the launch of Capcom Co., Ltd. (CCOEY - Free Report) Resident Evil: Village, which was the bestseller. Other titles that dominated the market were MLB: The Show 21 and Call of Duty: Black Ops: Cold War.
Although the economy is reopening and restrictions are being eased, leading people to step out of their homes more confidently, videogames will continue to dominate the entertainment space at least till the time the coronaviurus vaccine proves to be effective and fears subside.
Stocks to Watch
This scenario makes it an opportune time to invest in gaming stocks that are sure to benefit in the near term.
Sony Corporation designs, manufactures and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, displays, semiconductors, electronic components, gaming consoles, computers and computer peripherals, and telecommunication equipment.
The company’s expected earnings growth rate for the next year is 17.1%. The Zacks Consensus Estimate for current-year earnings has improved 6.5% over the past 60 days. Sony has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Activision Blizzard, Inc. is a leading developer and publisher of console, online and mobile games. The company’s Call of Duty is one of the most-popular gaming franchises globally. Its Overwatch League can be considered a pioneer of the e-sports concept.
The company’s expected earnings growth rate for the current year is 8.9%. The Zacks Consensus Estimate for current-year earnings has improved 3% over the past 60 days. Activision Blizzard carries a Zacks Rank #3.
Electronic Arts Inc. (EA - Free Report) is a leading developer, marketer, publisher and distributor of interactive games (video game software and content). It distributes its gaming content and services through multiple distribution channels as well as directly to consumers (online and wirelessly) through its online portals.
The company’s expected earnings growth rate for the current year is 11.6%. The Zacks Consensus Estimate for current-year earnings has improved 5.6% over the past 60 days. Electronic Arts has a Zacks Rank #3.
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3 Stocks to Watch as Videogame Spending Continues to Soar
Outdoor entertainment joints like parks and movie theaters have started drawing footfall but that isn’t going to hamper the videogame market that saw unprecedented growth during the pandemic. The last year was particularly great for the mobile and video gaming industry and the trend continues this year, with the first half witnessing record spending on videogames.
Also, so far, video game sales have increased every month since the coronavirus outbreak except for a surprise dip in April. This thus proves that the pandemic wasn’t the sole reason behind videogame sales getting a boost last year.
Videogame Sales Upside Continues
According to a report from mobile data and analytics provider App Annie, and IDC, gamers spent a record $1.7 billion per week globally on mobile games in the first quarter of 2021. This is a 40% jump from the pre-pandemic levels, the report mentions.
The United States led the market with gamers spending the most in the first quarter of the year. The report also mentions that global spending on mobile games will increase 2.9 times this year over PC and Mac gaming.
That said console games too have been putting up a great show since the coronavirus outbreak. According to the NPD Group, consumer spending on videogames, accessories and content and hardware jumped 3% on a year-over-year basis in May, reaching $4.5 billion. On a year-to-date basis, consumer spending on videogames has jumped 17% to $24 billion.
Videogame Industry Poised to Grow Further
No doubt, the videogame industry has been one of the biggest beneficiaries of the pandemic. That apart, the last year also saw the launch of a range of new titles and consoles, which have been driving sales this year too.
According to the NPD Group, spending on videogames jumped 30% in first-quarter 2021 on a year-over-year basis to reach $14.92 billion. Moreover, spending on hardware jumped a whopping 81%
In fact, in May too, sales were driven by the launch of Capcom Co., Ltd. (CCOEY - Free Report) Resident Evil: Village, which was the bestseller. Other titles that dominated the market were MLB: The Show 21 and Call of Duty: Black Ops: Cold War.
Although the economy is reopening and restrictions are being eased, leading people to step out of their homes more confidently, videogames will continue to dominate the entertainment space at least till the time the coronaviurus vaccine proves to be effective and fears subside.
Stocks to Watch
This scenario makes it an opportune time to invest in gaming stocks that are sure to benefit in the near term.
Sony Corporation designs, manufactures and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, displays, semiconductors, electronic components, gaming consoles, computers and computer peripherals, and telecommunication equipment.
The company’s expected earnings growth rate for the next year is 17.1%. The Zacks Consensus Estimate for current-year earnings has improved 6.5% over the past 60 days. Sony has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Activision Blizzard, Inc. is a leading developer and publisher of console, online and mobile games. The company’s Call of Duty is one of the most-popular gaming franchises globally. Its Overwatch League can be considered a pioneer of the e-sports concept.
The company’s expected earnings growth rate for the current year is 8.9%. The Zacks Consensus Estimate for current-year earnings has improved 3% over the past 60 days. Activision Blizzard carries a Zacks Rank #3.
Electronic Arts Inc. (EA - Free Report) is a leading developer, marketer, publisher and distributor of interactive games (video game software and content). It distributes its gaming content and services through multiple distribution channels as well as directly to consumers (online and wirelessly) through its online portals.
The company’s expected earnings growth rate for the current year is 11.6%. The Zacks Consensus Estimate for current-year earnings has improved 5.6% over the past 60 days. Electronic Arts has a Zacks Rank #3.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>